Midas Funds

Fund Strategies and Market Commentaries
As of April 8, 2015

Midas Magic seeks its investment objective of capital appreciation by focusing primarily on large companies, with a broad orientation towards conservatively priced value stocks and aggressively priced growth issues.  The Fund seeks portfolio companies with global operations and superior returns on equity and assets.  Two year-to-date top performing holdings in the Fund's portfolio are Kimball International Inc. (provider of furniture for the office and hospitality markets) and Daimler AG (manufacturer of Mercedes-Benz, one of the top luxury automobile brands in the world, and Freightliner, a leading U.S. truck brand).  The Fund's holding of Viacom Inc Class B (a global media company) has continued to underperform the broad market year-to-date after reporting lower than expected financial results.  The Fund's overall portfolio, as compared with the S&P 500, has a heavy weighting towards financial services, and less to economically sensitive industries such as energy and defensive consumer products companies, in anticipation of gradually improving economic prospects.  Although the Fund currently is leveraged, it currently anticipates reducing some holdings to adopt a more defensive investment posture in the second and third quarters of the year.

Midas Fund's  core strategy is to seek investments in higher quality senior and intermediate producers of precious metals and other natural resources.  As the gold price has bounced around the $1,150 - $1,300 per ounce levels during the year to date, positive year-to-date performance in the Fund's portfolio has reflected individual company operating and financial performance, such as by gold producers Detour Gold Corp. and Agnico Eagle Mines Ltd.  Meanwhile, prices for the shares of intermediate gold producer Eldorado Gold Corp. have fallen after the company reported lower production estimates for 2015.  As the gold price declined from mid-January through mid-March, the Fund held some reserves in cash. With the recent strength in gold, however, Midas Fund is considering adding to some current stockholdings and introducing new names into the portfolio.  Companies the Fund anticipates adding to its portfolio will normally be those with promising exploration potential, expanding production profiles, increasing cash flow, and/or other special growth features.

Midas Perpetual Portfolio  has benefited moderately during the year to date from its target allocations to gold and silver, as well as from Swiss franc assets, due to the volatile but positive price movements in those sectors.   The Fund allocates its assets in each of the following categories: gold, silver, Swiss franc assets, hard asset securities, and large capitalization growth stocks, and may, from time to time, use leverage to increase its allocation to large capitalization growth stocks. Currently leveraged in the year to date, the Fund's allocation to growth stocks has been led by the outperformance of Volkswagen AG but its hard asset allocation has stalled as superior returns from Syngenta AG (a global leader in crop-protection products) were offset by a decline in the shares of Sociedad QuĂ­mica y Minera de Chile S.A. following a corruption scandal.  Using a core "asset allocation" strategy to the extent consistent with tax planning and lower levels of portfolio turnover, the Fund seeks its investment objective to preserve and increase the purchasing power value of its shares over the long term.